Another Real Estate Tax Issue

Another issue relating to real estate taxes in
Michigan has been brought to my attention.

State statute relating to one aspect, public
utilities, was ruled on by the Michigan State
Supreme Court on February 5, 2008 in a case
called "Toll Northville Ltd v. Township of
Northville" 734 N.W.2d 902.

State statute MCL 211.34d(1)(b)(vii) reads:

"(viii) Public services. As used in this
subparagraph, "public services" means water
service, sewer service, a primary access road,
natural gas service, electrical service,
telephone service, sidewalks, or street
lighting. For purposes of determining the
taxable value of real property under section
27a, the value of public services is the
amount of increase in true cash value of the
property attributable to the available public
services multiplied by 0.50 and shall be added
in the calendar year following the calendar
year when those public services are initially
available."

The statute can be found at:

http://tinyurl.com/3yknqcx

The Supreme Court held:

"Because public-service improvements located
on public, easements or land that ultimately
becomes public do not constitute 'additions,'
as that term was understood when Proposal A
was enacted, we affirm the judgment of the
Court of Appeals that MCL 211.34d(1)(b)(viii)
is unconstitutional."

The court's opinion may be found at:

http://tinyurl.com/32g8nan

Are most of the properties in the State of Michigan
appraised too high as a result of this court verdict?

Bill Vajk